Here are the main stories shaping the world this afternoon: a fresh espionage row between the United States and China, an expanding naval conflict off Yemen, and a diplomatic standoff between Britain and Israel. Markets are holding steady but cautious.
FBI arrests California woman in alleged China spying case
The FBI has arrested a California woman accused of spying on the family of Taiwan’s leader on behalf of China, according to the Manila Times and AFP. The case adds a fresh flare of tension to the already strained US-China relationship. Any escalation between the two countries is watched closely, as it can affect global trade and supply chains.
Saudi-led coalition expands Yemen conflict to the naval domain
Saudi-led coalition naval forces carried out a military operation in Yemen’s Hodeidah governorate, Indian Express live updates reported on Tuesday. The operation comes as Saudi-backed Yemeni government forces launched a major offensive against the Houthis. With the conflict now spreading to the naval domain in the Red Sea, shipping insurance and freight costs on key global trade routes are likely to stay elevated.
Britain warns it may expel Israeli diplomats over Jerusalem consulate row
Britain is likely to expel Israeli diplomats if Israel goes ahead with closing the British consulate in East Jerusalem, Reuters reported on Tuesday. The 30-day deadline ends on Thursday, October 8, and around 30 British diplomats could be affected. The warning confirms an earlier British signal and adds to the diplomatic tension.
Market snapshot
Bitcoin is trading near $85,500 after being rejected at the $87,000 resistance level for the third time since September 23, with trading volume thin. Ethereum is near $2,700. Brent crude is around $100.28 to $100.64 a barrel and WTI near $89.33 to $89.69, caught between stronger Middle East exports and unresolved tensions around the US-Iran conflict and tanker attacks. Investors are waiting for the Federal Reserve’s September meeting minutes due October 7 and the TOKEN2049 conference in Singapore on October 7-8.